Record Fourth Quarter Sales of $154.5 million, up 12% Year over Year; Record Fiscal Year Sales of $661.6 million, up 14% Year over Year; 12th Consecutive Quarter of Double-Digit Year over Year Sales Growth
TORRANCE, CA — CarParts.com, Inc. (NASDAQ: PRTS), one of the leading e-commerce providers of automotive parts and accessories, and a one-stop shop for vehicle repair and maintenance needs, is reporting results for the fourth quarter and fiscal year ended December 31, 2022.
Fiscal Year 2022 Summary vs. Fiscal Year 2021
- Net sales increased 14% year over year to a record $661.6 million and increased 45% on a two-year stack.
- Gross profit increased 17% to $230.9 million, with gross margin increasing 100 basis points to 34.9%.
- Net loss was ($1.0) million or ($0.02) per diluted share, compared to a net loss of ($10.3) million or ($0.20) per diluted share.
- Adjusted EBITDA increased to $26.1 million vs. $16.8 million, up 56% year over year.
Fourth Quarter 2022 Summary vs. Year-Ago Quarter
- Net sales increased 12% year over year to $154.5 million and increased 27% on a two-year stack.
- Gross profit increased 9% to $51.6 million, with gross margin of 33.4%.
- Net loss was ($6.2) million or ($0.11) per diluted share, compared to a net loss of ($5.0) million or ($0.10) per diluted share.
- Adjusted EBITDA of $2.1 million vs. $2.6 million.
“2022 was a record-breaking year for us, marking our third consecutive year of double-digit revenue growth. Since 2019, we have more than doubled our revenues and returned the company to profitability by leveraging our positive unit economics. I’m also excited to announce we’ve built up a robust balance sheet which reinforces our confidence that we can continue to self-fund our future growth without reliance on outside capital,” said David Meniane, CEO of CarParts.com.
“For 2023 and beyond, we continue to put our customers and team members at the center of our strategy and feel prepared to tackle the future with intention, focus, and discipline as we gain market share. We are in a strong position to thrive and continue delivering profitable growth amid whatever changes the market brings us. We believe that doing this will benefit our shareholders in the years to come and grow the intrinsic value of our company.”
Fiscal Year 2022 Financial Results
Net sales in fiscal year 2022 were $661.6 million up 14% from $582.4 million in fiscal year 2021. For the first eight weeks of fiscal year 2023, we produced high single digit year-over-year revenue growth combined with sequential gross margin expansion and continue to balance growth with profitability and free cash flow generation.
Gross profit increased 17% to $230.9 million in fiscal year 2022 compared to $197.3 million in fiscal year 2021. Gross margin increased 100 basis points to 34.9% in fiscal year 2022 compared to 33.9% in fiscal year 2021. The increase in gross margin was primarily driven by favorable freight costs in 2022.
Total operating expenses in fiscal year 2022 were $230.2 million compared to $206.4 million in fiscal year 2021, mainly due to an increase in sales and investments in the business.
Net loss in fiscal year 2022 was ($1.0) million compared to a net loss of ($10.3) million in fiscal year 2021, both predominantly driven by non-cash charges.
Adjusted EBITDA in fiscal year 2022 was $26.1 million compared to $16.8 million in the fiscal year 2021.
On December 31, 2022, the Company had a cash balance of $18.8 million, no revolver debt and no outstanding trade letters of credit (“LCs”), compared to no revolver debt, no outstanding trade LCs and a $18.1 million cash balance at prior fiscal year-end January 1, 2022.
Fourth Quarter 2022 Financial Results
Net sales in the fourth quarter of 2022 were $154.5 million, up 12% from the year-ago quarter.
Gross profit in the fourth quarter increased 9% to $51.6 million compared to $47.4 million in the year-ago quarter, with gross margin decreasing 90 basis points to 33.4%, driven by seasonal freight charges which were higher and started earlier than the prior year.
Total operating expenses in the fourth quarter were $57.1 million compared to $52.0 million in the year-ago quarter, mainly due to an increase in sales and investments in the business.
Net loss in the fourth quarter was ($6.2) million compared to a net loss of ($5.0) million in the year-ago quarter, both predominantly driven by non-cash charges.
Adjusted EBITDA in the fourth quarter was $2.1 million compared to $2.6 million in the year-ago quarter.
About CarParts.com, Inc.
CarParts.com is the go-to eCommerce platform for auto care and maintenance. We offer drivers quality parts at competitive prices and allow customers to schedule an appointment with a trusted mechanic directly from our website. We use world-class design principles and the latest technologies to deliver a fast, easy-to-use, and mobile-intuitive website. And with our company-owned national distribution network, we bring the best brands and manufacturers directly to consumers, cutting out the costs associated with brick-and-mortar retailers. Our team members around the globe are dedicated to Empowering Drivers Along Their Journey. CarParts.com is headquartered in Torrance, California.